Monday, August 31, 2015

Immediate outlook for Infosy is unclear

Infosys found support at Rs.1,051.78, its 200-day moving average last week. The immediate outlook is not clear as the stock has closed around its 21-day moving average level of Rs.1,111. 

Hence, short-traders can wait on the sidelines until a clear trade signal emerges. Key resistance is at Rs.1,123. 

A strong break above this level is needed for the stock to gain momentum. Subsequent targets on such a break will be Rs.1,140 and Rs.1,165. 

If the stock fails to break above Rs.1,123 and reverses lower, it can move down to test Rs.1,050 levels once again. 

In such a scenario, the possibility of a break below this important support level is high. 

A fall below the level of Rs.1,050 can take the stock lower to Rs.1,030. It will also turn the outlook bearish and pave the way for a fall to Rs.1,000 and Rs.970 levels.


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